Part 4

Management and accountability

Corporate governance

The Chief Executive Officer of the AOFM reports to, and is accountable
to, the Treasurer, through the Secretary to the Treasury.

Three committees have been established for AOFM internal governance.
A Liability Management Committee has primary responsibility for
establishing policy and programs governing debt management operations
and reviewing operational performance, an Audit Committee has responsibility
for statutory financial reporting and for monitoring internal financial
controls and a Management Committee has responsibility for oversighting
and reviewing the overall strategic management of the organisation.

An AOFM Advisory Board has been established. The accountability of
the Board is to the Secretary to the Treasury, the Chair of the Board.
The Board performs an advisory role to the Secretary and does not possess
executive powers or decision making authority in its own right. The
Board advises the Secretary on matters relating to corporate governance,
strategic planning, financial risk management strategy and business
planning and is responsible for monitoring the performance of the AOFM
generally. The Board currently meets monthly, its first meeting taking
place in December.

The six member Board comprises the Secretary to the Treasury, the Executive
Director of the Economic Group in the Department of the Treasury, a
Senior Executive from the Department of Finance and Administration (representing
the Secretary of the Department), the CEO of the AOFM and two representatives
from the private sector. The private sector members, appointed for a
three year term, are Mr Tony Cole, past Secretary to the Treasury and
currently Executive Director at William M Mercer Pty Ltd. and Mr Greg
Maughan, Consultant and formerly a Director of Bankers Trust Australia
Ltd.

External scrutiny

Fraud control

In accordance with Part 7 of the Financial Management and Accountability
Act1997, the AOFM has a Fraud Control Plan that has been
endorsed by the Fraud Evaluation Committee within the Criminal Justice
Division of the Attorney-General's Department.

Judicial decisions, decisions of administrative
tribunals and reports by the Commonwealth Ombudsman

There were no matters relating to the AOFM which were the subject of
judicial proceedings, tribunal hearings or consideration by the Ombudsman.

Audit

The AOFM Audit Committee follows the recommended best practice guidelines
issued by the Australian National Audit Office (ANAO). The ANAO also
attends AOFM Audit Committee meetings as an observer. The Committee
reviews all audits relating to the AOFM and oversees any follow-up in
response to these audits.

Internal audits

No internal audits were conducted in the AOFM in 2000-01. An Internal
Audit Plan will be developed for the AOFM for 2001-02 with the assistance
of an outside contractor.

Reports by the ANAO

The following report of relevance to the AOFM was released by the ANAO
in 2000-01.

Audit Report No 23:
Audits of the financial statements of Commonwealth entities for the
period ended 30 June 2000 (financial statements audit)

This report summarises the final results of audits of the financial
statements of Commonwealth entities for the period ended 30 June 2000.

The ANAO issued an unqualified Audit Opinion in respect of the AOFM
on 30 August 2000.

Management of human resources

In 2000-01, all officers of the AOFM, apart from the Chief Executive
Officer, were deemed to be Treasury officers on loan to the AOFM. Accordingly,
the human resource management of the Treasury detailed in the Treasury
Annual Report applied equally to the staff of the AOFM. A human
resources framework for the AOFM has been developed over the course
of the year and is to be implemented early in 2001-02.

Set out below is the Treasury material edited as appropriate to AOFM
circumstances. All references to Treasury should be interpreted as embracing
the AOFM. All tables are specific to the AOFM.

Treasury's Performance Management System (PMS) and Career Development
System, which underpin the Treasury Management Model, provide the framework
for a range of Human Resource (HR) strategies by clarifying work level
standards, appraising performance and identifying and managing longer
term skills' development targeted to improve work performance, career
planning and staff retention. This framework is seen as critical to
the ability to attract and retain the skills necessary to perform core
functions.

Performance management

The PMS is an integral part of the Treasury Management Model incorporating
a biannual performance management cycle. Key elements include context
setting, ongoing task assignment, performance feedback and coaching
and role development between appraisals.

Prior to each appraisal round, the Secretary and Senior Executive Service
(SES) officers attend a context setting meeting. The aims of the meeting
are to ensure there is consistency in the approach to the appraisal
process and to set the broad context for the appraisals. The outcomes
of the meeting are disseminated to all staff. Additional context setting
meetings are held at the divisional and unit level to assist staff to
understand the practical aspects of appraisals at the operational level.

In addition to context setting meetings, briefing sessions are offered
to new starters prior to each performance appraisal round. Giving
and Receiving Feedback workshops are also provided to managers and
staff to develop skills related to performance appraisals and more general
interpersonal communication.

The Treasury PMS is designed to promote fairness through clearly defining
expectations and building in system controls including:

- the application of a Treasury Work Value Matrix that sets out the
standards expected of staff at each classification level and defines
the assessment criteria against which performance will be measured;

- the use of upward feedback to the manager-one-removed (that is, two
levels more senior), which acts as a system control by giving employees
an additional opportunity to comment on the appraisal process and their
manager's performance as a manager;

- the use of review panels comprising the manager-one-removed, the
immediate manager and other relevant managers, which facilitates fairness
and consistency among assessments;

- the use of structured under-performance provisions and strategies
that require approval and monitoring by the manager-one-removed; and

- transparency of appraisal outcomes for all staff.

There is a commitment to continuously improve performance management
processes and regular and comprehensive performance management reviews
are undertaken. The consultative processes provide opportunities for
staff to participate actively in the reviews and provide feedback on
all aspects of the appraisal process.

A review of the PMS was undertaken by Ernst & Young in 2001.
The terms of reference of the review were:

- the capacity of the PMS to assist Treasury meet its outputs and outcomes
while developing staff professionally and personally;

- a high degree of consistency of application across groups and classifications;

- confidentiality within the system is maintained;

- the purpose of the system has been largely achieved with good progress
in system objectives; and

- the system is working well, has improved work in Treasury and is
perceived by staff as a step forward.

Recommendations from the review, which were circulated to senior management
and the WRC for discussion, will be implemented where appropriate in
the next performance appraisal round.

The Treasury Certified Agreement 1999-2002 introduced a new broadbanded
classification structure for staff below Executive Levels 1 and 2. Movements
within the two broadbands are determined through the Treasury's Performance
Management System or by merit selection involving an open field. The
February 2000 appraisal cycle, the first cycle that facilitated
movements to the new structure, resulted in movements of staff within
the two broadbands. This streamlined process provides fair, objective
and transparent broadbanded, performance-based advancement outside the
traditional selection processes, eliminating the need for resource intensive
selection processes. In addition, the PMS provides opportunities for
staff performing at a higher level to be recognised through a system
of temporary payments or prospective and retrospective loadings.

APS values

Following the passage of the Public Service Act 1999, the Secretary
issued a staff notice to all Treasury employees informing them of the
principal features of the new legislation and the impact on their employment.
The staff notice highlighted the new Australian Public Service (APS)
values, which were reproduced in full as an attachment to the notice.

The Treasury Certified Agreement 1999-2002 includes a segment which
reinforced the APS values as they existed before 5 December 1999. While
the Certified Agreement was not renegotiated to incorporate the amended
and additional values, key Treasury documents such as departmental operational
plans, the Treasury induction package and the PMS refer prominently
to the current APS values. In addition to this, the APS values are published
on the Treasury Intranet and displayed on posters which are placed around
the building.

In June 2001, a staff survey was conducted as a measure of how well
the APS Values and APS Code of Conduct had been incorporated into the
Treasury culture. Of the staff who responded, more than 70 per cent
indicated that they understood the APS Values and Code of Conduct and
that they, and those with whom they worked, understood their application.

Treasury Certified Agreement

The Treasury Certified Agreement 1999-2002 came into effect on 3 September 1999.
The three year Agreement was made under section 170LK of the Workplace
Relations Act 1996.

- the availability of advancements within a broadband, and temporary
loadings and bonuses as a result of assessments under the PMS;

- an initial pay increase, on certification, of three per cent for
all employees covered by the agreement;

- further increases of two per cent on each of the first and second
anniversaries of the certification date;

- movement to a revised salary structure, based on performance appraisal
under the terms of the PMS;

- the elimination of retention periods for excess staff;

- access to accrued sick leave for use as personal leave;

- greater flexibility in determining allowances;

- a specific establishment allowance for new-entrant graduates from
interstate;

- provisions to determine conditions for employees transferred as a
result of 'machinery of government' changes;

- exclusion of SES employees from the agreement (all SES staff are
offered Australian Workplace Agreements (AWAs)); and

- an enhanced role for the WRC, particularly in relation to a review
of conditions of service and drafting of the next agreement.

Through the processes of the PMS, the vast majority of staff are now
covered by the revised salary structure. The general pay increase scheduled
for 3 September 2000 was duly delivered.

Recruitment and succession planning

Treasury advertises nation-wide for policy staff by way of regular
bulk-round recruitment processes. Internal transfer rounds are also
conducted on a regular basis. Specialist positions are advertised as
required, with a temporary register actively catering for non-ongoing
staff.

Graduate recruitment remains an important element of the Department's
overall recruitment strategy, with 40 graduates commencing in the 2000-01
financial year. A number of senior Treasury policy and SES staff participated
in the Graduate Recruitment Program, through visits to universities
to meet students and present seminars, attendance at the ACT 'Careers
Fest' and participation in the Australia-wide selection process. An
informative booklet, Graduate Careers with Treasury 2002, was
developed in-house and distributed to universities and all candidates
interested in the graduate positions. A graduate website containing
relevant information on the program, including input from previous graduates,
is also accessible through Treasury's home page on the Internet website.

Graduates are offered a formal training program in their first year
to provide the opportunity to enhance skills developed through on-the-job
training. Training and other development opportunities are offered to
staff, with priority placed on skills identified through the PMS and
the Career Development System.

Treasury was represented on the working group that developed the ANAO
good practice guide Planning for the Workforce of the Future
and has drawn on the guide to evaluate Treasury's workforce planning
practices. Considerable energy has been invested in improving and streamlining
recruitment and selection processes with an organisation-wide approach
taken to most recruitment. Treasury has implemented biannual bulk round
selection processes and annual graduate selection processes aligned
to Treasury's capability frameworks. In addition, streamlined Departmental
recruitment guidelines and skills development for selection panels have
enhanced Treasury's selection processes.

Work is being undertaken to refine Treasury's longer term workforce
needs and, more particularly, the need for specialist skills in both
policy and administrative areas. Treasury's Performance Management and
Career Development Systems enable the Department to identify, track
and align training and development needs to people development and management
strategies. The Department is also improving the capacity of its Human
Resource Management System (Aurion) to provide a range of demographic
and qualitative data of Treasury's workforce, a necessary tool for workforce
planning.

Training and development

Treasury's PMS and Career Development System regularly provide data
that identifies the training and development needs of staff. This data
is used to identify key modules for the Department's training program
and to align development opportunities with business needs. As a result,
key training areas for 2000-01 included leadership, communication, performance
management and technical skills.

Sixty participants completed a comprehensive Leadership Development
program for EL2 employees. Two groups have now completed the program
and a third group will conclude early in 2001-02. The program incorporates
360 degree feedback based on the Public Service and Merit Protection
Commission (PSMPC) Senior Executive Leadership Capability Framework
and aims to enhance individual development at the personal, team and
strategic levels, as well as strengthen management and leadership skills
for current and future management roles. This Program has had a positive
impact at the organisational level, with consideration now being given
to leadership development for the senior management group (SES).

Writing Skills workshops have been offered throughout the year,
specifically targeting Treasury requirements. Two workshops were offered
on Writing for Publications to assist those involved with preparation
of Budget documents. In addition, Providing Oral Advice workshops
have been tailored to meet the requirements of SES and EL2 staff. The
workshop topics included briefing ministers, participation in inter-departmental
committees and appearances before parliamentary committees. Presentation
Skills workshops have also been provided to Treasury staff.

Prior to each performance appraisal round, briefing sessions are offered
to new starters, providing a context for the system and clarifying the
processes. Workshops are also offered to managers and staff on giving
and receiving feedback to develop skills related to performance appraisals
and more general interpersonal communication.

Performance appraisal data indicates that more than 50 per cent
of staff identify on-the-job training as a key method of development.
Training options reflect an increased emphasis on developing coaching
skills for managers. Individual coaching is available from HR staff,
external consultants and through Treasury's Employee Assistance Program
(EAP), which offers a Manager Assist service. Training in team skills
continues with many areas of the Department conducting planning days
and team building exercises. The EL2 Leadership Development program
also provides managers with opportunities to develop their coaching
and mentoring skills.

Treasury's studies assistance policy provides for leave provisions
and, in some cases, financial assistance for staff to access tertiary
study. External courses, conferences, workshops and seminars continue
to be used for suitable development opportunities.

Graduates commencing in Treasury each year participate in a development
program that includes comprehensive induction into the Department, effective
writing, presentation skills, people skills, and an introduction to
the Senate and the legislative process, as well as on-the-job training.

Staffing information

Staffing numbers in the AOFM were little changed over the course of
2000-01. Reflecting its operational mandate, it is anticipated that
there will be a moderate increase in staff numbers over the course of
2001-02 as the AOFM moves on from its initial establishment phase.

The following table provides details of the number of staff working
in the AOFM, by category and gender, as at 30 June 2001. All staff are
employed under the Public Service Act 1999 and are located in
Canberra.

Table 1: Operative and paid inoperative staff by classification and
gender (as at 30 June 2001)

Ongoing

Non-ongoing

Full Time

Part Time

Full Time

Part Time

Classification

Male

Female

Male

Female

Male

Female

Male

Female

Total

APS1

APS2

APS3

APS4

2

2

APS5

2

1

1

4

APS6

4

1

5

Cadet

EL1

6

1

1

8

EL2

3

1

4

SEB1

1

1

SEB2

SEB3

1

1

Secretary

Total

17

4

4

25

A description of each acronym used in the above table can be found
in the Acronyms on page 181. Details for permanent staff refer to substantive
classifications and do not recognise those staff acting at a higher
classification. Paid inoperative staff are those who are absent on approved
leave for more than twelve weeks.

Senior executive service - remuneration and performance appraisal

All SES employees have their remuneration and conditions determined
by AWAs. The AWAs are supplemented by a remuneration model which allows
for progression through a number of salary points and the payment of
performance bonuses.

From September 2000, SES were appraised using the PSMPC Senior Executive
Leadership Capability Framework. Previously, the SES were appraised
against the work value matrix contained in the PMS.

The appraisal process has two steps. Initially, SES are assessed as
performing satisfactorily or unsatisfactorily against each appraisal
criterion and on an overall basis. SES are then given an individual
quintile ranking for each criterion, and an overall quintile ranking,
reflecting their performance relative to their peers.

As a result of appraisal, salary movements and payments of loadings
and bonuses are made in accordance with the SES pay model and, as appropriate,
the terms of individual AWAs. Executive remuneration is reported in
Note 10 of the Financial Statements. All SES employees have the use
of a private plated vehicle. Other benefits include airline lounge membership
and mobile phones.

Remuneration - employees other than SES

The Treasury Certified Agreement 1999-2002 introduced a revised pay
structure which provides salary outcomes as a result of performance
appraisal under the PMS. All employees are appraised at six-monthly
intervals, in February and August. Salary scales applicable under the
Certified Agreement are set out in Table 2.

Table 2: Certified Agreement salary scales

3 September 2000

3 September 2001

Classification

Top
$

Bottom
$

Top
$

Bottom
$

APS1

28 630

26 265

29 203

26 790

APS2

32 569

30 467

33 220

31 077

APS3

36 771

34 670

37 506

35 363

APS4

40 973

38 872

41 792

39 649

APS5

46 752

43 863

47 687

44 740

APS6

52 530

49 641

53 581

50 634

EL1

65 137

58 650

66 440

59 823

EL2

79 846

72 491

81 443

73 941

Senior management changes

There were no senior staff departures or internal promotions for the
AOFM in 2000-01.

Industrial democracy

Treasury has continued to undertake extensive consultation with employees
on matters which affect them in the workplace. The key consultative
body is the WRC which operates under the terms of the Treasury Certified
Agreement 1999-2002 to facilitate employee consultation on the operation
of the Agreement and related staffing and management issues. Elections
for the Committee were held in May 2001 with three Executive level employee
and three APS level employees being elected. In addition, staff invited
the Community and Public Sector Union (CPSU) to participate on the WRC.

The WRC took a key role in the audit of the PMS conducted by Ernst & Young
this year. The Committee assisted the Treasury Executive Board in scoping
the terms of reference for the audit and consulted with staff on issues
related to the consistency and integrity of the operation of the PMS
and the level of staff satisfaction with it. The WRC also provided comments
on the Report and its recommendations.

The WRC was also consulted on a range of people management systems
and policies, including the revised Workplace Diversity Plan and the
Disability Action Plan.

The current Certified Agreement will expire in September 2002. The
WRC has begun preparatory work for the next Certified Agreement and,
as part of this process, is meeting regularly with the Secretary to
discuss workplace issues of interest to staff. The Committee will also
be represented on the steering committee for market testing of Corporate
Service functions.

Throughout 2000-01, the Department developed its Intranet site improving
accessibility of information, policies and guidelines. The Intranet
is also being used increasingly as a tool for staff consultation to
facilitate comments on draft policies prior to finalisation.

Occupational health and safety

The Occupational Health and Safety (Commonwealth Employment) Act
1991 and the Safety, Rehabilitation and Compensation Act 1988
form the legislative basis of Occupational Health and Safety (OH&S)
and Rehabilitation in the Treasury.

The Departmental OH&S Committee meets quarterly and comprises representatives
from groups, units and the CPSU. The OH&S Committee members undertook
training during 2000-01 to assist them with their responsibilities.

Treasury maintained a close occupational health and safety focus during
the extensive refurbishment of the Treasury building, the first stage
of which was completed in December 2000. The OH&S Committee played
a prominent role during that process. The second stage of the refurbishment
process is continuing and the OH&S Committee will maintain its involvement
in this process.

As part of the refurbishment process, specialist OH&S consultants
have been engaged to provide OH&S advice and workstation briefing
sessions for staff. In addition to the briefing sessions, staff were
provided with an opportunity to have an extended individual assessment
of their workstations. The OH&S briefings will also be conducted
for staff relocating in the second stage of the refurbishment process
in August 2001.

Matters dealt with by the Committee include: occupational health and
safety issues and policies, accommodation issues and accident and incident
reports. The Committee also considers reports from the Employee Assistance
Program provider, Davidson Trahaire.

The EAP provides confidential counselling on work-related and personal
matters to all Treasury staff members and their families. Quarterly
reports provided by Davidson Trahaire allow Treasury to monitor the
usage of the EAP and identify workplace issues that need to be addressed.
During 2000-01, there were no significant issues identified for action.

During 2000-01, Treasury received 53 accident and incident reports
(12 more than the number reported in 1999-2000), three were notifiable
under section 68 of the Occupational Health and Safety (Commonwealth
Employment) Act 1991. Nine of these accidents and incidents resulted
in compensation claims, one of which is yet to be determined. There
were no notices given under sections 29, 46 and 47 of the Act this financial
year. However, there were a number of incidents related to building
work during the refurbishment period. These matters were attended to
under the building works' contract.

To prevent injuries in the workplace and to enhance the safety of staff
members, workplace assessments are conducted regularly. The types of
accidents that are continuing to occur are: occupational overuse syndrome,
car accidents and sporting injuries. All accidents and incidents that
are reported are investigated and action taken as necessary.

Workplace diversity

The strategies and initiatives of Treasury's Workplace Diversity Program
encourage and utilise the contributions of people of different backgrounds,
experiences and perspectives. The focus of the program has been to implement
strategies that attract, develop and support employee participation
reflecting the broad cross-section of the Australian community.

Treasury's Disability Action Plan is linked to the Commonwealth Disability
Strategy and is intended to ensure equal opportunities for people with
disabilities to access and utilise Government programs and services.
It is supported by the principles and objectives of Treasury's Workplace
Diversity Program. The Plan was reviewed and updated early in 2001 in
consultation with the WRC.

The Treasury Certified Agreement provides for a carer's room to offer
staff a safe and quiet workplace in which to attend to their dependant's
needs while continuing to fulfil their work commitments in Treasury.
The carer's room guidelines were revised and released on the Departmental
Intranet in April 2001. The carer's room continues to be used regularly
by staff caring for sick children, nursing mothers and staff caring
for children whilst the primary carer is unavailable. Staff are asked
to complete an evaluation form after using the room. Generally, staff
have indicated that they are happy with the carer's room.

Treasury has a number of workplace harassment contact officers who
are fully trained to provide advice and assist staff members. Ongoing
training is offered to all contact officers on a regular basis and a
list of workplace harassment contact officers is provided to all Treasury
staff members through the Treasury Staff Bulletin and electronic mail.

Treasury has participated in the Indigenous Cadetship Program since 1993.
Currently, Treasury employs four staff (three operative and one inoperative)
who have self-identified as being from an indigenous background.

Women's representation in senior levels in the Department is supported
through overall people management strategies, including the PMS and
Career Development System. Particular strategies include coaching and
on-the-job training, internal and external development programs and
mobility within the Department.

Table 3: Operative and paid inoperative staff
by EEO target group (as at 30 June 2001)

Classification

Female

Born Overseas

ESL

AATSI

Disability

Cadets

0

0

0

0

0

APS1

0

0

0

0

0

APS2

0

0

0

0

0

APS3

0

0

0

0

0

APS4

2

1

0

0

0

APS5

2

3

2

0

0

APS6

1

0

0

0

0

EL1

2

2

0

0

0

EL2

1

0

0

0

0

SESB1

0

0

0

0

0

SESB2

0

0

0

0

0

SESB3

0

0

0

0

0

Total

8

6

2

0

0

Note: For equal employment opportunities (EEO) categories other than
gender, staff identification is made on a voluntary basis and staff may
be included in more than one category.

EEO in appointments to boards (or equivalent)
of statutory and non-statutory bodies

The AOFM Advisory Board to the Secretary to the Treasury was established
by the Secretary during the year. Two members of the Board are from
the private sector, neither of whom is from an EEO target group.

Consultants

The AOFM's policy and procedures on contracting services are contained
in the Treasury's Chief Executive Instructions and are based on the
Commonwealth Procurement Guidelines issued by the Department of Finance
and Administration.

The most frequent reasons for the AOFM to use consultants were:

- access to specialist skills or knowledge not available in-house;

- need for rapid access to latest technology and expertise in its application;
and

- access to specialist in-house resources unavailable in the time allowed.

Seven consultancies valued at $10,000 or more were contracted by the
AOFM during 2000-01 at a cost of $437,993. A further three consultancies
valued at less than $10,000 were contracted by the AOFM during 2000-01
at a cost of $20,032.

Table 4: Consultancies over $10,000 in 2000-01

Consultant

Project

Cost(i)
$

Reason

Procurement Method(ii)

INFACT Consulting Pty Ltd

Advice in relation to the acquisition of IT infrastructure

30 541

a, e

Direct Engagement

INFACT Consulting Pty Ltd

Advice in relation to the acquisition of a Treasury system

114 470

a, e

Open tender

Mastech Asia Pacific Pty Ltd

Provision of specialist programming skills

98 487

a, e

Select tender

Mercer Cullen Egan Dell

Development of position descriptions and remuneration framework

56 170

e

Select tender

Stratagem Pty Ltd

Database development

22 565

a, b

Direct engagement

Studio Seven

Interior design of AOFM accommodation

10 080

e

Direct engagement

willbak.com

Development of a human resources framework

105 680

e

Select tender

(a) Need for rapid access to latest technology and expertise in its application.

(b) Specialist in-house resources unavailable in time allowed.

(c) Need for an independent study or review.

(d) Need for a change agent or facilitator.

(e) Specialist skills or knowledge not available in-house.

Notes

i. Any cost not paid in 2000-01 will be paid in 2001-02.

ii. Direct engagement includes the engagement of: a consultant selected
from a pre-qualified panel arrangement; a recognised and pre-eminent expert;
a consultant who had previously undertaken closely related work for the
AOFM or Treasury; or a consultant known to have the requisite skills where
the value of the project did not justify the expense or delay associated
with seeking tenders.

Competitive tendering and contracting

No competitive tendering and contracting work was undertaken during
the course of the year. The AOFM has a Service Level Agreement with
the Treasury for it to provide a range of corporate services to the
AOFM. The Service Level Agreement, which is subject to regular review,
governs the provision of the corporate services and includes a range
of performance measures and standards.

Purchasing

The AOFM's policy and procedures on purchasing goods and services are
contained in the Treasury's Chief Executive Instructions and are based
on the Commonwealth Procurement Guidelines issued by the Department
of Finance and Administration.

Asset management

The AOFM's assets consist of computers, plant and equipment leased
from the Treasury and leasehold improvements owned by the AOFM. In accordance
with the AOFM's Service Level Agreement with Treasury, Treasury is responsible
for all aspects of asset management for the AOFM.

Advertising and market research

No expenditure on advertising and market research
was undertaken by the AOFM in 2000-01.

Discretionary grants

No discretionary grant programs are administered by the AOFM.

Freedom of Information

The AOFM was established on 1 July 1999 as a prescribed agency under
the Financial Management and Accountability Act 1997. At that
time it assumed responsibility for the Commonwealth's debt management
activities previously undertaken as part of the Department of the Treasury.

The Treasury is responsible for handling Freedom of Information matters
in respect of the AOFM and the Department's statement under section
8 of the Freedom of Information Act 1982 appears in the Treasury
Annual Report. In reading that material, all references to 'Department'
should be interpreted as encompassing the AOFM. Set out below are matters
which relate specifically to the AOFM.

Treasury - Statement under Section 8 of the
Freedom of Information Act 1982

The following information addresses the formal requirements of section 8
of the Freedom of Information Act 1982 in relation to the AOFM's
role within the Treasurer's portfolio. The full Treasury statement is
in the Treasury Annual Report.

Organisation of the Australian Office of Financial
Management

The AOFM is responsible for the Commonwealth's debt management operations
which include debt issuance, portfolio management and debt administration.
Details of the AOFM's organisational and top management structure, the
AOFM's functions, and the decision-making powers exercised in carrying
out those functions, are provided in Part 1 of this report.

Delegations to the AOFM

The Treasurer has provided delegations or authorisations to AOFM officials
in relation to certain powers under a number of Acts of Parliament,
as set out below. These stand in force until renewed at an appropriate
time.

- The Treasurer has delegated certain powers under the Commonwealth
Inscribed Stock Regulations to the Chief Executive Officer, AOFM.

- The Treasurer has delegated certain powers under the Loans Securities
Act 1919 to the Chief Executive Officer, AOFM and to holders
of various positions within the AOFM.

- The Treasurer holds certain delegated powers under the Constitution
and the Financial Management and Accountability Act 1997 in relation
to agency financial management. These powers have been delegated to
the Chief Executive Officer, AOFM. In addition, the Minister for Finance
and Administration has delegated certain powers under the Act and its
Regulations to the Chief Executive Officer, AOFM.

- The Treasurer has delegated his powers of investment under the Financial
Management and Accountability Act 1997 to the Chief Executive Officer,
AOFM.

Arrangements for outside participation

Persons or organisations outside the Commonwealth administration may
participate in the formulation of policy or in the administration of
enactments and schemes for which the AOFM is responsible, by making
representations in writing to the Treasury portfolio ministers, to the
Secretary to the Treasury, or directly to the AOFM.

Categories of documents held by the AOFM

The following categories of documents are held by the AOFM.

Representations to Treasury portfolio ministers

The AOFM holds representations made to Treasury ministers on matters
relating to borrowing money on the public credit of the Commonwealth.

Working files

The AOFM holds files dealing with policy and administration in the
area of borrowing money on the public credit of the Commonwealth. The
documents on these files include correspondence, analysis and policy
advice by AOFM officers, comments on Cabinet Submissions and drafts
of these and other documents.

An indexed list of the titles of the policy files created in the AOFM
is placed on the Treasury website (www.treasury.gov.au) every six months.

Documents on internal departmental administration

Treasury holds a broad range of documents relating to staff and to
the organisation and operation of the department. These documents include
personal records, organisation and staffing records, financial and expenditure
records, and internal operating documentation such as office procedures
and instructions.

Documents open to public access subject to
a fee or a charge or available free of charge upon request

Currently, the AOFM only publishes this annual report. In previous
years, an annual Commonwealth Debt Management Report was published.
The content of that report has been subsumed within the AOFM Annual
Report. These documents are available on the AOFM's website (www.aofm.gov.au),
or from the Government Info Shops in each capital city.

Facilities for access to documents

If a member of the public requests a document and access is approved,
the AOFM will provide copies of documents after receiving the payment
of any charges that apply.

Alternatively, applicants may make arrangements to inspect documents
at the Treasury, Langton Crescent, Parkes ACT between 9.00 am and
5.00 pm, Monday to Friday (except public and public service holidays).

Freedom of Information applications and initial
contact points

Corporate Services Division of the Treasury coordinates requests under
the Freedom of Information Act 1982. Applicants seeking access
under the Act to documents in the possession of the AOFM should apply
in writing to:

Requests should be accompanied by an application fee of $30 or a written
request, pursuant to subsection 30A(1) of the Act, that the application
fee be waived. Telephone inquiries should be directed to the Freedom
of Information Coordinator, telephone (02) 6263 3972, between 9.00 am
and 5.00 pm Monday to Friday (except public or public service holidays).

Officers of the senior executive service in Treasury have been authorised
under section 23 of the Freedom of Information Act 1982 to make
decisions granting or refusing requests for access to documents. In
accordance with section 54 of the Act, an applicant may, within
30 days of receiving notification of a decision under the Act,
apply to the Secretary to the Treasury, seeking an internal review of
a decision to refuse a request. The application should be accompanied
by the prescribed fee of $40. A Treasury officer who has been authorised
under section 23 to make decisions on internal review (usually
an Executive Director) will conduct an independent review.

Freedom of information activity in 2000-01

In 2000-01, the AOFM received no requests for access to documents under
the Freedom of Information Act 1982.

Ecologically sustainable development and environmental
performance

In what follows, references to the Treasury should be read as embracing
the AOFM.

In January 2001, Treasury moved into newly refurbished accommodation
at the western end of the Treasury Building. The newly refurbished accommodation
has a number of innovations that will allow Treasury to meet and improve
on targets relating to Government policy on environmental issues.

The Department is a member of the Australian Public Service EcoNet
Committee and actively participates in Government sponsored environmental
management initiatives. In addition, the Department holds membership
of the Facilities Management Association, which facilitates the exchange
of ideas and information relating to all aspects of building management,
including environmental management and efficiency.

Paper and cardboard products

Treasury has been active in recycling paper and cardboard products
for a number of years. The Department utilises desktop and workplace
containers to collect paper and cardboard products which, in turn, are
collected by a local recycling firm. The Department also recycles classified
waste paper into pulp. Additionally, Treasury's kitchen facilities have
recycling bins that simplify the task of separating recyclable items
that previously would have been sent to landfill. It is estimated that
this practice has reduced the amount of Treasury's waste previously
sent to landfill by over 30 per cent.

In addition to recycling paper and cardboard products, the Department's
central reproduction area procures paper that is made from 80 per cent
recycled fibre and actively encourages other areas of the Department
to use recycled paper.

Toner cartridges

Treasury currently uses genuine printer and facsimile toner cartridges
which, after being used, are returned to the supplier for recycling.

Compostable recycling

All kitchens in the refurbished accommodation have sealed compostable
waste containers to simplify the task of disposing of compostable material.
This has led to an increase in the amount of this type of waste that
is being recycled. The service enables compostable waste which would
normally be sent to landfill to be recycled organically. In the 12 months
to the end of June 2001, the Department recycled 1,324 kilograms of
compostable waste. This represents an increase of 27 per cent when compared
with the previous twelve months.

Procurement

Treasury purchases goods and services in accordance with the environmental
procurement policy as set out in the Commonwealth Procurement Guidelines.
This ensures that goods and services are:

The Department is currently negotiating the renewal of its electricity
contract, a proportion of which will be green power.

Energy efficiency systems

Building management system

The Treasury building is controlled by a building management system
that provides energy management and reporting and separate metering
of selected main energy consuming regions.

Energy audit

Treasury recently completed an energy review and audit of the Treasury
Building tenancy. The report reviewed design specifications and actual
performance and made recommendations for further improving energy usage.
The report will provide a working Energy Management Plan that reflects
the aspirations of Treasury towards responsible energy management.

Lighting

Timer switches control all general lighting in the refurbished Treasury
accommodation. This enhancement ensures that lights are only operational
during standard working hours. After hours lighting is controlled by
manually operated pass switches which turn on lights in specific areas
of the building for periods of up to two hours.

Following the installation of the lighting control system, the Department
commissioned an energy audit of the new accommodation. Preliminary findings
indicate that electricity consumption has decreased by between 10 and
15 per cent.